Virginia Receives 122 Million Dollars in Federal Rural Health Grants to Expand Telehealth, Paramedics, and Workforce Training

The Centers for Medicare and Medicaid Services announced on August 28, 2026 that Virginia will receive 122 million dollars as the initial distribution of its first-year Rural Health Transformation Program award. Virginia's total fiscal year 2026 award is approximately 189.5 million dollars; the remaining funds are expected to be distributed later in the year.

Virginia branded its state plan "VA Rural Vitality." CMS said the funds will expand rural healthcare capacity through remote patient monitoring, virtual care visits, mobile and hybrid care models, rural residency training slots, community paramedicine programs, and maternal care access. The state will also use a portion of the money to build allied health career pathways, apprenticeships, and earn-while-you-learn programs intended to address rural workforce shortages.

An additional component will provide early-stage rural health technology companies with support to scale digital solutions in underserved communities.

The funding flows from the Rural Health Transformation Program, a five-year initiative created in the 2025 budget reconciliation law. The program is funded at 10 billion dollars per year through 2030 and all 50 states are participating. Virginia's funds will be administered by the Virginia Department of Medical Assistance Services.

For Medicare beneficiaries in rural Virginia, the practical effects over the coming years may include more opportunities to see specialists by video, new community-based paramedic programs, and a larger local healthcare workforce.